中衡设计：经营现金流改善，布局装配式、BIPV和AI

Investment Rating - The report maintains a "Recommend" rating for the company [2][5] Core Views - The company's operating cash flow has improved, with a net operating cash flow of RMB 78 million in Q1-3 2024, an increase of RMB 58 million YoY, primarily due to stricter cost control on subcontracting and other expenses [1] - The company is actively expanding into prefabricated construction, BIPV (Building Integrated Photovoltaics), and AI design, with over 80% of its projects involving prefabricated construction and nearly 100% of concrete residential projects using prefabricated technology [2] - The company's subsidiary, Hengxing Information, has developed AI-based image recognition and RPA (Robotic Process Automation) technologies, which have been selected as one of China's top 100 digital transformation cases [2] Financial Performance - Revenue for Q1-3 2024 was RMB 919 million, a YoY decrease of 21.2%, while net profit attributable to shareholders was RMB 67 million, a YoY decrease of 28.82% [1] - Gross margin improved to 26.35%, up 1.64 percentage points YoY, while net margin decreased to 7.38%, down 0.74 percentage points YoY [1] - The company's ROE (Return on Equity) was 4.45%, a decrease of 2.11 percentage points YoY, and the asset-liability ratio was 54.44%, down 1.67 percentage points YoY [1] Future Projections - The company's revenue is expected to grow to RMB 1.79 billion in 2024, RMB 1.925 billion in 2025, and RMB 2.131 billion in 2026, with YoY growth rates of 3.51%, 7.51%, and 10.71% respectively [4] - Net profit attributable to shareholders is projected to be RMB 111 million in 2024, RMB 117 million in 2025, and RMB 128 million in 2026, with YoY growth rates of 4.03%, 5.73%, and 9.52% respectively [4] - The P/E ratio is expected to be 23.14x in 2024, 21.88x in 2025, and 19.98x in 2026 [4] Industry and Company Positioning - The company is a leader in the prefabricated design industry and has been recognized as one of the first "National Prefabricated Construction Industry Bases" [2] - The company's projects, such as the Suzhou Broadcasting and Television Station Modern Media Plaza and the Suzhou Bay Cultural Center, have been listed as provincial-level demonstration projects for prefabricated construction [2] - The company is also pioneering in BIPV, with projects like the Suzhou GoodWe Technology Co., Ltd. Smart Energy R&D Building, which integrates various BIPV products and is expected to be a key demonstration project for low-carbon building technologies [2]